Kbank said on the 30th that it posted a net profit of 60.1 billion won in the first half of the year. That was down 24.1 billion won (28.6%) from 84.2 billion won a year earlier.
Deposits at the end of the second quarter totaled 26.6 trillion won. The outstanding loan balance at the end of the second quarter came to 19.8 trillion won, up 13.8% from the same period last year. Despite the ongoing stance of managing household loans, growth in loans to sole proprietors drove expansion. The outstanding loan balance to sole proprietors rose from 1.6 trillion won to 3.3 trillion won over one year.
Kbank's first-half interest income rose about 20% year over year, from 211.6 billion won to 253 billion won. Amid the stance of managing household loans, growth in loans to sole proprietors led to improved profitability. As a result, the net interest margin (NIM) on a cumulative basis climbed from 1.38% in the first half of last year to 1.59%. In contrast, non-interest income fell 68% year over year, from 73.3 billion won to 23.3 billion won.
The second-quarter credit cost ratio improved to 1.08% from 1.13% a year earlier. Even as the outstanding loan balance increased by more than 2 trillion won, stable risk management helped lower the ratio itself. However, with the larger loan book, credit costs rose 24.2% to 51.3 billion won from 41.3 billion won a year earlier.
The delinquency rate held steady, from 0.59% at the end of the second quarter last year to 0.60% at the end of the second quarter this year, while the ratio of substandard-or-below loans rose from 0.51% to 0.59% over the same period. In particular, the delinquency rate in the sole proprietor segment continued to fall, from 0.93% at the end of the second quarter last year to 0.51% at the end of the second quarter this year. The BIS ratio at the end of the second quarter was 20.02%.
Kbank plans to further strengthen its growth engine in the second half by focusing on expanding services for sole proprietors and bolstering capabilities in digital-asset-related businesses. It also launched a project to build a lending system for small and midsize corporations, aiming to roll out a non-face-to-face loan service for small and midsize corporations next year.